Tribals would be given 26% profit share if mining takes place in their area, the government assured the Rajya Sabha on Monday. The move is expected to reduce the rising protest in tribal areas against mining that brings little developmental gains to the region.

According to the minister for mines BK Handique, justice would be done to the tribal population and issues relating to ecological balance will be kept in mind while carrying out the mining activities.The empowered group of ministers that is currently looking into the mines and minerals development and regulation (MMDR) bill 2010 will ensure that he interests of tribals are protected, Handique told while replying to a question in zero hour. The draft bill has been prepared on the basis of policy directions in the National Mineral Policy, 2008, and Hooda Committee recommendations after consultations with the stakeholders.

Major issues laid down in the policy include making the regulatory mechanism more conducive to technology and investment flows, ensuring transparency in the concession process, and strengthening the role of Geological Survey of India and Indian Bureau of Mines.

Industry body FICCI had earlier written to the PM against the provisions of the bill. It had claimed that sharing the profits of mining companies with affected people ?would be like money earned without any effort?. The letter also pointed out that the move will lead to greater inequalities and cause socio-economic problems besides making the mining industry operations unviable.

With mines minister sticking to the earlier stance it has become clear that the government, conscious of the left-wing extremism among the tribal population in the mining belt in central India is determined to push through the reforms in the bill.